Posts tagged gig work
Side Hustles in Focus as Gig Worker Laws Stir Uncertainty
May 1, 2024 // In the debate over the classification of gig workers, Massachusetts finds itself at the center of a legislative whirlwind, echoing a lengthy battle around California’s AB5 Gig-worker law. Proposals to reclassify Uber and Lyft drivers as employees rather than independent contractors have sparked heated discussions about labor rights and the unintended consequences of regulatory measures.
Seattle’s new minimum wage rule undermining delivery drivers
April 25, 2024 // It’s not just restaurant owners who are being squeezed. So are drivers. Drive Forward Seattle, an app-based driver advocacy group, recently surveyed its members on the impact of the rule. A DoorDash driver identified as Marvin said, “I went from making $300 a day during the weekends to making $80 a day and that’s on a good day. It takes over 2hr to even get one order.” A driver named Sally told the advocacy group, “90 percent of the customers don’t tip since the app changed. So, they have to go back onto the app after the delivery, if they even remember to do so, in order to tip. That’s a big thumbs down.” The pushback has been so strong that the Seattle City Council has mulled repealing the rule altogether. Unions, who have struggled to organize the delivery drivers, have pushed back against the potential repeal, arguing that the wage system is working as intended.
New Law Redefines Employees and Contractors
March 7, 2024 // Data suggest worker misclassification may be the exception rather than the rule in many industries. Surveys consistently show that most independent contractors prefer their independence. Around 79% of them prefer their arrangement over a traditional job, according to the U.S. Bureau of Labor Statistics, while fewer than one in 10 contractors want a traditional work arrangement. "Since a lot of older Americans do seek out these flexible forms of work as they near retirement — or after — this rule will likely lead to reduced work opportunities for them." Implemented in 2020 when acting U.S. Labor Secretary Su was California's labor commissioner, California's Assembly Bill 5, or AB5, similarly set out to protect workers by getting more people on the payrolls. But many Californians working as legitimate contractors suddenly lost income after businesses and nonprofits stopped working with them as freelancers and didn't hire them as employees.
Collateral Damage in the War on ‘Gig Work’
February 12, 2024 // A new Department of Labor rule regarding independent contractors is likely to hurt overall employment.
California’s Attack on Gig Work Predictably Drove Workers Out of Jobs
January 19, 2024 // Last week, the DOL announced a new set of rules for determining whether a worker is an employee or an independent contractor. Like with California's A.B. 5, those proposed federal rules are meant to crack down on what the government sees as a deliberate effort to misclassify workers as contractors—which can change, among other things, the benefits that an employer is obligated to pay. Most gig workers and independent contractors are content with their more flexible, less structured employment arrangements—so in some sense, these governmental efforts seem to be trying to save workers from their own choices.
Are Unionized Gig Workers The Future Of Work?
June 2, 2023 // Additionally, some unions—because of a lack of resources—aren’t able to take the most direct approach to helping gig workers. “Unfortunately, right now there are some unions that have taken a ‘strategic’ approach of trying to work with the companies and become their labor partners,” says Dryburgh. “In May 2021, they tried getting a law passed in NYC that would provide Independent Drivers Guild and Transport Workers Unions fees for representing workers that would come from fares and delivery fees. The problem with these laws is that while they provide immediate benefits to workers, they create these carveouts that prevent app-based workers from being classified as employees. These kinds of deals can have irreparable consequences for the rest of the labor movement. If the new standard of whether you are an employee depends if you get your job through an app, all W2 employees are in trouble.”
Independent workforce climbs as U.S. women leave traditional jobs
May 17, 2023 // The independent professionals in the report are defined as not employing others and working in the following industries: • Professional services, such as legal, accounting and marketing • Skilled technical services, including architecture and computers • Creative services, such as artists and video producers Here's a breakdown of independent professionals and their typical revenue in 2022, based on the study's survey: • Professional, 3.4 million people, with average earnings per hour of $103 • Technical, 1.9 million people, with average earnings per hour of $90 • Creative, 1.4 million people, with average earnings per hour of $71 Despite mounting concerns over the economy, most independent professionals feel financially secure, according to the survey. More than eight in 10 reckon that having multiple sources of income provides a greater level of security than relying on a single employer.
The FTC’s Indefensible Position on Collective Bargaining
April 19, 2023 // In remarks last week at the University of Utah School of Law, FTC Commissioner Alvaro Bedoya argued that independent contractors should be allowed to bargain collectively. He acknowledged that courts have always treated collective bargaining by contractors as illegal under federal antitrust law. But he claimed that these courts have made a mistake: in fact, Congress never meant to stop small contractors, like truckers or plumbers, from forming a union and bargaining together. Bedoya’s interpretation would upset a century of careful balancing between antitrust and labor policy. It would also expose the contractors themselves to serious risks of abuse. And it would undermine well-established rules against collusion, price fixing, and other restraints on trade. To see why Bedoya is so wrong, you have to understand labor law and antitrust law’s tangled history. Let’s start with section 1 of the Sherman Antitrust Act. Adopted in 1890, section 1 banned all contracts and conspiracies in restraint of trade. It did not, however, define trade restraints. Instead, it incorporated common-law standards. Under the common law, unions were treated no differently from any other combination of buyers or sellers. If they conspired to fix labor prices, they violated the law. And collective bargaining could be seen as one form of price fixing. As a result, the law sometimes treated unions as, essentially, labor cartels.
Labor board decision could force Google to negotiate with YouTube contractors
March 7, 2023 // Alphabet has been labeled a joint employer, which may have some big ramifications for workers if they decide to unionize. For its part, Alphabet intends to appeal the NLRB’s decision. “We simply don’t control these workers’ employment terms or working conditions,” spokesperson Courtenay Mencini told Bloomberg. In addition to the union drive and fight to get Alphabet recognized as a joint employer, the contractors went on strike in February to protest return to office orders — the first strike at the company, according to the AWU. The dates for the union election haven’t been publicly announced yet.